12 January 2020
Dear Experts! In case of inter branch goods transfer, it has been always queried that how to determine the value of goods. Whereas second proviso of rule 28 CGST rule state that Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services, However In view of above explanation since the inter branch is distnict person also eligible for full ITC hence as per these proviso we can even transfer the goods at the zero value because it is stated that value declared in the invoice shall be deemed to be open market value'
12 January 2020
As per my view, whatever stand you take whether it is one or x amount. in an overall view, the tax impact is nil to the government. (State or Center) 0 is not a value if you speak in common parlance. Hence, I feel 0 value would be rejected Hence, what's the use of fighting over a matter for which the government does not have financial impact. However the entity may possibly have some cash flows impact for which it can fight over this
13 January 2020
The branch should have no exempted supply [ nil rated, wholly exempted sec11 or non taxable supply] at all for invoice value say re.1 to be accepted. All transactions of supply if receiver avails credit are revenue neutral. However, GST has to be paid. After disputes in ITC , valuation diputes would be the largest inGST.
CAclubindia
